Randi Mason Quoted in Business Insurance about trends in Representations and Warranties Insurance

Randi Mason, Co-Chair of the Corporate Department, was quoted in Business Insurance about the changing market for representations and warranties insurance.

In the article, entitled "M&A cover costs rise with losses," Randi said, “Now that reps and warranties insurance is a default source for coverage in a transaction, insurers have their pick of deals and they don’t have to be as accommodating anymore,” … “Where I’m seeing the most change is insurers are kicking the tires on due diligence that buyers are doing much more deeply than before.”

She continued, “Increased insurer scrutiny on M&A deals is making negotiations more complex,” … “In a recent deal, the insurer sent the middle-market buyer six pages of questions and proposed exclusions covering topics such as corporate, tax, insurance, benefits, intellectual property/cyber, real estate and financial matters,” … “Ultimately, there were over 15 to 20 deal-specific exclusions in the policy, in addition to exclusions for known breaches.”

The article can be found here.